LOS ANGELES -- Motorcar Parts of America (MPA) has acquired Fenwick Automotive Products Limited (Fenco) for 360,000 shares of Motorcar Parts' common stock.

Based in Toronto, Canada, Fenco Automotive Products manufactures and distributes new and remanufactured parts, including steering components, brake calipers, master cylinders, hub assembly and bearings, clutches and clutch hydraulics, constant velocity drive shafts, water pumps, control arms and loaded struts for the full range of passenger and truck vehicles in use in the markets it serves. The company’s products are sold through major aftermarket distribution channels in the U.S., Canada and Mexico, out of facilities located in Pennsylvania, New Hampshire, Toronto and Mexico.

Talk of the acquisition first began in August 2010, when MPA made a $1.9 million (CDN $2 million) investment in Fenwick, which was structured as a secured loan with an option to acquire substantial ownership of the company. In December 2010, MPA moved closer to acquiring the company when it increased its investment in the business to roughly $5 million.

"The acquisition complements our existing customer relationships and adds new sales cross-over opportunities. In addition, the transaction greatly expands our strategic supplier relationships throughout Asia," said Selwyn Joffe, chairman, president and CEO of Motorcar Parts of America.

The acquisition is expected to more than double consolidated revenues. In addition, the company expects to achieve annual savings of at least $20 million once the acquisition is integrated, which is expected to be completed within a two-year period. MPA anticipates that Fenco will contribute at least $25 million of annual EBITDA from the existing revenue base once integration is complete.

"Integrating the Fenco business into the MPA model is an exciting challenge," Joffe said. He noted that Fenco, which sells private label and branded products, is well-respected in the industry – offering a broad array of non-discretionary automotive-related components, such as steering, brakes and clutches to original equipment replacement customers, as well as the majority of leading retail and traditional warehouse customers throughout North America.

Joffe emphasized that the acquisition complements the company's existing position within the alternator and starter category to include high-growth, under-the-car product line applications with significant expansion opportunities moving forward.

"The acquisition provides a strategic platform for other add-on acquisitions, and the enhanced ability to develop and offer other products -- including those that support emerging automotive technologies," Joffe said. "Fenco has done a tremendous job of launching critical application products into high-growth opportunity categories, and we look forward to continuing this success."

"Fenco's 60-year history highlights our commitment to the automotive industry and we look forward to continued success as a subsidiary of Motorcar Parts of America," said Gordon Fenwick of Fenco Automotive. "We have outstanding people and are excited to work with MPA to build an industry-leading organization."

Fenwick added that "an enhanced capital base and the adoption of best practices will better enable our organization to take advantage of new and existing opportunities within the marketplace."

Motorcar Parts and Fenco are both customer-centric organizations, ISO/TS16949 registered and recognized for the highest level of quality and service, MPA adds.